03:06 PM EDT, 05/29/2024 (MT Newswires) -- The US saw continued expansion in economic activity from early April to mid-May, though conditions varied across districts and industries, while the outlook was "somewhat more pessimistic," the Federal Reserve said in its latest Beige Book released Wednesday.

Most US districts reported "slight or modest" growth in activity, while two saw no change, according to the latest Beige Book, which was prepared by the Dallas Fed based on information collected by May 20. "Retail spending was flat to up slightly, reflecting lower discretionary spending and heightened price sensitivity among consumers," the document showed.

The previous report, which was released April 17, showed that US economic activity expanded slightly since late February, while the outlook was "cautiously optimistic."

Prices rose at a modest rate, the latest Beige Book showed. "Contacts in most districts noted consumers pushed back against additional price increases, which led to smaller profit margins as input prices rose on average," the report said. In the near term, price growth is likely to continue at a modest pace.

Employment increased at a "slight" pace, with eight districts reporting negligible to modest job gains and four noting no changes. Wage growth was mostly moderate, the document showed. "A couple of districts expect a continuation of modest job gains, while others noted a pullback in hiring expectations amid weaker business demand and reluctance due to the uncertain economic environment."

Manufacturing activity was mostly flat to up, though two districts reported decreases, according to the Beige Book. Auto sales were almost flat, though nonfinancial services saw higher demand. Increased leisure and business travel helped strengthen travel and tourism across much of the US, though hospitality contacts were mixed in their expectations for the summer season.

Housing demand grew modestly, while single-family construction advanced even as growing rates affected sales activity. Supply concerns, tight credit conditions, and higher borrowing costs contributed to a softening in commercial real estate sector conditions, the document showed.

"Overall outlooks grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks," according to the Beige Book.